INTERNAL WAR LOAN.

Waikato Times, Volume 87, Issue 13275, 2 September 1916, Page 4 (Supplement)

INTERNAL WAR LOAN.

The following is a fuller report el the recent interview with .Mr Harold Beauchamp, Chairman of the Dank . f New Zealand, of winch we have alr.ndv pui> iished a summary sent by the i'u'.-s As sociation:—"I do net presume to be in the confidenee of the Government in i.-gud t. its immediate financial proposals," said Mr Beauchamp. ''but I bine verv reason for assuming that the linpen.il t,,,vernment has expressed a wish that New Zealand should itself raise a 1-an to meet its expenditure in connection with the war. and f shall not I )c . turpiisetl :t tinGovermiient's pi up. .sals include a provision for raising a substantial lean." Relerring to his foiiuer "pp 1 siti. Nt the proposal n a !,< a l loan. Mr I'.eaiirhatnp said he i.avl always < ~usiih ;eil that the luif.riial < i >\y: unie'it was not averse to the at bv whi.'h it undertook the iitJeneing . f the dominion's war expenditure. ' i e< nsieleted that the raising f latge slims such as £5.000.000 w• -uiel at oiue have a disturbing effect mi the 1 ,ai uieiiey market, am! was likely to ine rease the price of money. AsstiniiJig that- the Imperial Government lias expressed a de finite wish that the Dominion should carry out a- more self-reliant policy. I should be very sorry indeed by any public utteiames to oppose its wish." Mr Beauchamp said lie thought there would be little difficulty in raising a loan of £5.000.000 at 4 per <-ei:t.. it. as was done in the ease of last- year's public works loan, the interest were free of income tax, and the Govern ment followed the example of Australia and provided as an additional attraction that the loan debentures would be available for the payment of death and succession duties. "An argument has beet, used by some politicians," Mr Beauchamp continued, "that the Dominion's finance will be seriously interfered with if the Government accepted debentures in payment of these dut.es. It is reasonable to assume that the Government itselt will have a market for such debentiuu?, and would be able to convert them into cash as they passed to the Government from those administering estates. To meet that difficulty, I suggest- that a tax of one-half per cent, should be placed on all descriptions of produce exported front the Dominion. On the basis of last year's exports the tax would yield £750,000, but, assuming that there will he a considerable drop in the value ot our exports, it would produce not less than £500,000, or £600.000 per annum. While the farmers are benefiting to such an enormous ex tent by the magnificent prices realised for produce, it would not be nnieasonab'e to ask them to contribute e- small an amount. For instance, a man with fifty bales of wool valued for export at £ISOO, or double the price prevailing before the war, would contribute £7 10s per annum. 1 do not propose that this tax would necessarily be permanent, because I think it may be desirable later on that the Government should set aside the amount received annually front death and succession duties with the distinct object Ot' reducing the public indebtedness of the Dominion. To my mind, the ' iovernment is not justified in treating as revenue money that represents a. depreciation of capital." Reverting to the suggested payment- of death and succession duties by loan debentures. Mr Beauchamp said he knew many elderly people in the Dominion who wer? keeping large sums liquid and earning practically nothing; with the object of providing for the payment ot death and succession duties without embarrassment to their estates. If loan debentures were available for this purpose he was confident that a large proportion of the loan would be subscribed by the-e pooPie-